MI HB5594

Allows licensees under the Regulatory Loan Act to charge interest rates up to the limit permitted by the Credit Reform Act (1995 PA 162).

Permits a loan processing fee not exceeding 5% of principal, up to $250.00 per closed-end loan, with the $250.00 cap adjusted every 2 years based on the U.S. consumer price index.

Adds authority for licensees to charge a monthly account service fee for each outstanding closed-end loan not exceeding 9.75% of the original principal amount.

Prohibits licensees from inducing borrowers to have multiple unsecured loan contracts simultaneously and prohibits using multiple contracts to circumvent loan processing fee restrictions.

Clarifies that charges on loans must be computed on unpaid principal balance based on actual days elapsed, and cannot be paid in advance, deducted, or compounded.